Ways of increasing of efficiency of management of the credit portfolio of commercial banks
Bechko V.P., Candidate of Economics, , Uman National University of Horticulture, Ukraine
89. Pat 2
The article is devoted to modern problems and to peculiarities of management of credit portfolio in the examined bank. Also, the authors propose the improving of the quality of credit portfolio management. Namely, to achieve the efficient operation of the banking institution the authors conducted an analytical study of the dynamics of the credit portfolio, as well as they suggested ways to improve the efficiency of management of the credit portfolio of commercial banks.
The main directions of improvement of credit risk management of commercial bank, as well as the problem of quality control of the loan portfolio are considered in the article. The authors determined that the main way of protection of banks from credit risks is the analysis of financial condition and the credit worthiness of future borrowers.
Theoretical bases of the analysis and evaluation of the loan portfolio and management of quality of loan portfolio, character of modern practices of management of credit quality of the portfolio and formulation of the main directions for its improvement are considered in this article.
The results of the analysis of data of article allow making the conclusion about the increasing of risk of the loan portfolio which requires the development of appropriate measures aimed at improving the bank crediting activities.
In the article the authors stated that the long-term loans were granted according to the state target program of the conversion of re-equipment of manufacturing and for consumer loans to individuals. Besides, the violation of the terms of credit repayment was observed not in long-term but in short-term loans. The share of extended and overdue loans increased.
The authors defined that cautious credit policy with increasing of interest rates, constant monitoring of the loan portfolio, the immediate actions of bank management for risk management should lead to an increase in the volume of lending, improving the system of quality management of the loan portfolio.
Implementation of mainly qualitative in nature measures of improving structure of the loan portfolio will affect the financial stability of banks and their efficiency. It will improve the competitiveness and safety of the domestic banking institutions.